The Russian stock market continues growth despite sanctions

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The Russian stock market continues to rise despite the implementation of sanctions by the USA against Russia. Also in the oil sector yesterday, we saw some correction wave. The WTI oil prices declined on Thursday after President Donald trump demanded OPEC to find a way to reduce oil prices.
On the new York Mercantile exchange for November delivery fell 32 cents to 70,80 dollars per barrel, while on London’s Intercontinental exchange, Brent fell by 1.03% to 78,58 per barrel. Today, oil prices opened higher and the level of 80 dollars per barrel will be reached anytime soon. Against this background, companies-exporters and the oil and gas sector in General have undergone some corrective dynamics due to partial fixing of positions by large market participants. Today, amid stabilizing oil prices companies as: Gazprom, Tatneft, Rosneft will continue to rise.
Do not forget about the company “RUSAL”, which also remains in the focus of investors since then, as the US administration announced that new customers can sign contracts with the company “RUSAL” without fear of new sanctions. The growth potential of this paper is to 35.00 roubles per share, which is achievable in the short term. As for national currency, there is a prospect of strengthening of the ruble.
Since there are no risks for the financial system of Russia and the Finance Ministry has no plans to buy foreign currency, at least until the end of the year. Therefore, the General background of the Russian stock market is relatively positive until the end of today’s trading session, the indexes can close in the green zone.
American stock indexes closed in positive territory. Wave of buying emerged on wall street, especially in industrial sectors, on increasing hopes that the US and China will find the solution to its trade dispute after both countries have imposed tariffs on each other this week. Fees charged by both countries, was lower than many feared, which helped to lift the mood on trade.
Optimism on the trade front was marked by excellent growth in Boeing (NYSE: BA) and Caterpillar (NYSE: CAT), both of which are believed to be the barometer of trade, given their large exposure to China. Apple (NASDAQ: AAPL), whose products were removed from the list of items subject to tariffs grew by almost 1%, accelerating the growth of the technology sector. However, not all are convinced that the Commerce of the United States and China will be resolved sooner than later.
However, the enormous bond yields rose on Thursday, but that didn’t stop shares of the Bank that held the second day in a row, pushing higher average to record levels. Goldman Sachs (NYSE: GS), Citigroup Inc (NYSE: C) and Bank of America (NYSE: BAC) closed higher, continuing the growth from Wednesday, which followed the increase of yield on 10-year Treasury bonds. The increase in Treasury yields is seen as a benefit for banks.
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Gaidar Hasanov
Expert
“International financial center”